SEHK:178

Stock Analysis Report

Sa Sa International Holdings

Executive Summary

Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Sa Sa International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 178 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.4%

178

-3.8%

HK Specialty Retail

-4.2%

HK Market


1 Year Return

-47.8%

178

4.0%

HK Specialty Retail

-2.6%

HK Market

Return vs Industry: 178 underperformed the Hong Kong Specialty Retail industry which returned 4% over the past year.

Return vs Market: 178 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

178IndustryMarket
7 Day-11.4%-3.8%-4.2%
30 Day1.1%-1.0%-0.9%
90 Day-2.7%1.4%1.7%
1 Year-43.7%-47.8%9.6%4.0%0.9%-2.6%
3 Year-36.8%-47.0%24.6%10.2%19.6%7.6%
5 Year-56.0%-68.0%-4.1%-22.9%18.6%-1.0%

Price Volatility Vs. Market

How volatile is Sa Sa International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sa Sa International Holdings undervalued compared to its fair value and its price relative to the market?

11.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 178 (HK$1.79) is trading above our estimate of fair value (HK$1.75)

Significantly Below Fair Value: 178 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 178 is good value based on its PE Ratio (11.6x) compared to the Specialty Retail industry average (11.6x).

PE vs Market: 178 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 178's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 178 is overvalued based on its PB Ratio (2.2x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Sa Sa International Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 178's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: 178's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: 178's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 178's revenue (0.4% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 178's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 178's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has Sa Sa International Holdings performed over the past 5 years?

-17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 178 has high quality earnings.

Growing Profit Margin: 178's current net profit margins (5.6%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 178's earnings have declined by -17.8% per year over the past 5 years.

Accelerating Growth: 178's earnings growth over the past year (1.5%) exceeds its 5-year average (-17.8% per year).

Earnings vs Industry: 178 earnings growth over the past year (1.5%) underperformed the Specialty Retail industry 1.5%.


Return on Equity

High ROE: 178's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sa Sa International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 178's short term assets (HK$2.9B) exceeds its short term liabilities (HK$863.5M)

Long Term Liabilities: 178's short term assets (HK$2.9B) exceeds its long term liabilities (56.3M)


Debt to Equity History and Analysis

Debt Level: 178 is debt free.

Reducing Debt: 178 has no debt compared to 5 years ago when its debt to equity ratio was 3.4%.

Debt Coverage: 178 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 178 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 178 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 178's debt is covered by short term assets.


Next Steps

Dividend

What is Sa Sa International Holdings's current dividend yield, its reliability and sustainability?

8.94%

Current Dividend Yield


Dividend Yield vs Market

company8.9%marketbottom25%2.3%markettop25%6.4%industryaverage5.1%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: 178's dividend (8.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 178's dividend (8.94%) is in the top 25% of dividend payers in the Hong Kong market (6.38%)


Stability and Growth of Payments

Stable Dividend: 178's dividend payments have been volatile in the past 10 years.

Growing Dividend: 178's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.7%), 178's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 178's dividends in 3 years are not forecast to be well covered by earnings (107.4% payout ratio).


Next Steps

Management

What is the CEO of Sa Sa International Holdings's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Simon Kwok (66yo)

22.9yrs

Tenure

HK$3,096,000

Compensation

Dr. Siu Ming Kwok, also known as Simon, BBS, JP serves as an Executive Chairman and Chief Executive Officer of Sa Sa International Holdings Ltd. Dr. Kwok co-Founded Sa Sa International Holdings Ltd. in 197 ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD395.59K) is about average for companies of similar size in the Hong Kong market ($USD407.68K).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

59yo

Average Age

Experienced Management: 178's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 178's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$5,667,36629 Oct 19
Invesco Ltd.
EntityCompany
Shares2,926,000
Max PriceHK$1.94
BuyHK$6,136,73325 Oct 19
Invesco Ltd.
EntityCompany
Shares3,218,000
Max PriceHK$1.91
BuyHK$155,84728 Dec 18
Wai Chu Tam
EntityIndividual
Shares51,949
Max PriceHK$3.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Simon Kwok (66yo)

    Executive Chairman & CEO

    • Tenure: 22.9yrs
    • Compensation: HK$3.10m
  • Eleanor Kwok Law (65yo)

    Vice-Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.93m
  • Peter Law (63yo)

    Senior Vice President of Category Management & Product Development

    • Tenure: 11.8yrs
  • Guy Look (62yo)

    CFO & Executive Director

    • Tenure: 17.2yrs
    • Compensation: HK$3.51m
  • Simmy Mak (53yo)

    Senior VP

    • Tenure: 5.1yrs
  • Andy Tsoi (49yo)

    Senior VP of Finance & Accounting and Group Financial Controller

    • Tenure: 3.6yrs
  • Tony Yung (56yo)

    Senior Vice President of eCommerce

    • Tenure: 3.4yrs
  • Ming Chan

    Director of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Melody Kwok (41yo)

    Executive Director

    • Tenure: 0.2yrs

Board Members

  • Simon Kwok (66yo)

    Executive Chairman & CEO

    • Tenure: 22.9yrs
    • Compensation: HK$3.10m
  • Eleanor Kwok Law (65yo)

    Vice-Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.93m
  • Leonie Ki (72yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: HK$412.00k
  • Guy Look (62yo)

    CFO & Executive Director

    • Tenure: 17.2yrs
    • Compensation: HK$3.51m
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: HK$481.00k
  • Marie-Christine Lee (59yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$332.00k
  • Melody Kwok (41yo)

    Executive Director

    • Tenure: 0.2yrs
  • Nicholas Chan (45yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs

Company Information

Sa Sa International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sa Sa International Holdings Limited
  • Ticker: 178
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$5.555b
  • Shares outstanding: 3.10b
  • Website: https://www.sasa.com

Number of Employees


Location

  • Sa Sa International Holdings Limited
  • MP Industrial Centre
  • 8th Floor
  • Chai Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
178SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1997
SSWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1997
178SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1997
178SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1997
SAXJ.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 2010

Biography

Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products. The company offers approximately 700 brands of skincare, fragrance, make-up, b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:33
End of Day Share Price2019/11/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.